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Investing.com – The US dollar rose in early European trade on Tuesday, rebounding after falling from a three-week high overnight, while weak German economic data weighed on the euro.
At 1:46 Riyadh time, the US currency, which tracks the US currency against a basket of six other currencies, rose 0.10% at 102.31, after falling from its highest levels in three weeks in the previous session, amid uncertainty, which has stimulated price cuts in 2017. 2024 Some profit taking.
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The dollar retreated from three-week highs after the Federal Reserve’s dovish speech
The dollar gained about 1% last week as doubts began to emerge about whether the Federal Reserve would start cutting interest rates as early as the first quarter of 2024.
However, it fell on Monday after the Fed’s relatively dovish speech, with the governor calling monetary policy “sufficiently restrictive” and the Atlanta Fed president reiterating his view. Interest rates are likely to be lowered this year.
In addition, the New York Fed’s latest survey of consumer expectations showed US consumers’ short-term inflation expectations falling to their lowest level in nearly three years in December.
Thursday’s US CPI remains the main focus this week, as it will likely determine future expectations for interest rate moves from the Federal Reserve.
The euro fell due to weak German economic data
Trading in Europe fell 0.1% at 1.0945, after data showed an unexpected decline of 0.7% in November on a monthly basis. Recording its sixth consecutive monthly decline.
The European Central Bank is trying to justify keeping interest rates at record levels for some time, but it is likely to come under pressure to ease monetary policy given the weakness of the German economy, the largest economy in Europe.
Friday’s data showed a rise to 2.9% in December from 2.4% in November. But this was widely expected, and growth in the region remains difficult.
It also fell by 0.1% to 1.2733, with traders awaiting the release of November GDP data on Friday for further guidance.
Japanese inflation declines
On the other hand, Tadawul fell by 0.1% to 144.09, after data showed inflation fell near the Bank of Japan’s annual target range of 2% in December. The Bank of Japan has indicated that it will not begin to tighten its ultra-cautious policy until the 2% target is achieved.
{2111} rose 0.1% to 7.1595, as sentiment towards China remained weak. Its release on Friday is expected to show a continuing deflationary trend in the country, while trade data is likely to show continued weakness in export drivers.
2024-01-09 10:50:00
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